Line Discount (Purch) in Dynamics 365 Finance and Operations - Functional consultant series

Welcome Dynamics 365 FinOps consultant to our latest blog post! Today, we delve into the fascinating world of Dynamics 365 Finance and Operations, focusing specifically on the implementation and application of line discount trade agreements. This powerful feature, when used effectively, can significantly streamline your purchasing processes and optimize your vendor relationships. So, let’s get started and explore how you can leverage this functionality to your advantage

Step 1: Journal Name Setup

Go to Procurement and Sourcing > Setup > Prices and Discounts > Trade agreement journal name

Click on (+) New button and create a journal name with the relation type "Line disc. (purch)"

Step 2: Turn on line discount parameters

Go to Procurement and Sourcing > Setup > Prices and Discounts > Active price/discount

Step 3: Create a line discount trade agreement

Go to Procurement and Sourcing > Prices and discounts > Trade agreement journals

Click on New button and select line discount journal name in the Name colum

After this click on Lines button in the action pane.

I have established an agreement for a single vendor and item, which you can modify according to your needs. For instance, if you wish to create an agreement for a group of vendors, choose ‘Group’ as the Party code type and select the appropriate vendor group in the Account selection. For the Item, choose ‘Group’ in the Product code type and pick the suitable item group in the ‘Item relation’ column.

Step 4: Post the trade agreement.

Step 5: Verify the discount is applying

To check if the line discount is being applied to the item, let’s create a new purchase order for the vendor with whom we have posted the trade agreement. Include the Item in the lines of the purchase order, and confirm if the discount appears in the discount column, as depicted in the figure below

Happy Learning,

Syed Amir Ali.